Perth-based burns treatment developer Clinical Cell Culture Ltd, or C3, will raise $10 million through a share purchase plan to existing shareholders for further commercialisation of the company's ReCell product.
Perth-based burns treatment developer Clinical Cell Culture Ltd, or C3, will raise $10 million through a share purchase plan to existing shareholders for further commercialisation of the company's ReCell product.
The deal, which is underwritten by Bell Potter Securities Ltd, will allow shareholders to subscribe for shares at 6.8c each to a maximum value of $5,000.
The full text of a C3 announcement is pasted below
Clinical Cell Culture Ltd today announced its intention to raise $10 million in additional capital, via a Share Purchase Plan, primarily to fund the further growth and commercialisation of the Company's lead product, ReCell.
The SPP is underwritten by Bell Potter Securities Limited.
Clinical Cell Culture Chief Executive Officer Bob Atwill said, "The additional capital will provide the Company with the financial strength and capacity to fully commercialise C3's tissue engineering technology, and in particular provide C3 with the financial resources required to continue to roll out C3's core product offering, ReCell®."
Mr Atwill added, "C3 had taken major steps forward in recent months in terms of product commercialisation and alignment of distributors to maximise penetration in key approved markets."
"Approval for the sale of ReCell in the United States and the selection of the right partners for its successful launch remain the most important milestone for C3 and we remain on track to secure Food and Drug Administration approval in the third quarter of 2007," he said.
"This capital raising will ensure C3 has the financial capacity to implement our growth strategy in existing approved markets. It will also enable high potential markets to be funded through regulatory approval and most importantly support our trial, approval and entry into the lucrative U.S. market."
Under the SPP existing shareholders will have the opportunity to subscribe for shares in C3 up to a maximum value of A$5,000 at a price of 6.8 cents per share. This represents a discount of 30 per cent to the weighted average market price of the Company's shares in the 5 trading days immediately preceding the date of this announcement.
The SPP will be subject to shareholder approval, details of which will be contained in the Notice of Meeting to be mailed to shareholders in the next few days.
A letter of offer under the Plan and a copy of the Terms of the Plan will also be circulated to eligible shareholders. The record date for participation in the SPP will be Friday 27 October 2006 and the offer will remain open until Friday 1 December 2006.
